“That it be an instruction to the Standing Committee on Finance that it have the power to divide Bill C-2, an act to provide further support in response to COVID-19, into two bills: Bill C-2A, an act to provide further support in response to COVID-19 (business support programs); and Bill C-2B, an act to provide further support in response to COVID-19 (benefits and leave), provided that (a) Bill C-2A be made up of part 1 of Bill C-2; (b) Bill C-2B be made up of all other parts of Bill C-2; (c) the House orders Bill C-2A and Bill C-2B to be printed; (d) the Law Clerk and parliamentary counsel be authorized to make any technical changes or corrections as may be necessary to give effect to this motion and; (e) if Bill C-2A is not reported back to the House within two sitting days after the adoption of this motion, it shall be deemed reported without amendment.”
He said: Madam Speaker, sometimes the simplest questions are the hardest to answer. The other day, I was in the finance committee, where the government was asking parliamentarians to approve another $7-billion expenditure. It sent 10 government officials to tell us all of the wonderful things this $7 billion would do. I had a simple question: Where does the money come from? Silence blanketed the room.
I sat quietly and patiently, looking up at the Zoom screen, to find out if a reassuring voice would answer an obvious and simple question. We were told the majority of the 10 officials were from the finance department. If any department were able to tell us where the money comes from, one would expect it would be finance, but silence continued to triumph. The awkwardness thickened to the point that it could be cut with a knife.
Finally, the chair broke in and encouraged me to ask another question that might be easier for these 10 government officials to answer. I then asked the chair if he could tell us where the money comes from. He was likewise perplexed. He sat baffled in front of the committee, unaware of what to do. This is the chair of Canada's parliamentary finance committee, here in a G7 country.
Of course, there are really only four places that money that passes through the House comes from: one, it can be taxed; two, it can be borrowed; three, it can be printed; or four, God forbid, it can be cut from something else and reallocated. However, none of those answers were forthcoming.
Instead, a fifth novel explanation of the providence of this money came forward, finally, about three minutes into the long committee silence. One official said that the money is within the government's broader macroeconomic framework and that he could not speak to it. If $7 billion can appear magically from something called a “government's broader macroeconomic framework”, then everyone should have a broader macroeconomic framework.
Imagine what a single mother could buy at the local grocery store if, instead of having to rely on decreasingly valuable Canadian dollars to buy food for her kids, she could carry around with her a broader macroeconomic framework. Imagine if the worker who cannot afford to gas up his car could just open up his wallet and, instead of pulling out increasingly worthless Canadian dollars, he could pull out a card inscribed with “broader macroeconomic framework”. Then he might even be able to fill up his tank with gas. Maybe that 28-year-old who lives in his parents' basement despite having a good job, because house price inflation has made it impossible for him to buy, could, instead of using inferior Canadian currency to bid on a house, walk up to the realtor and say that he has decided to pay not with cash, not even to pay with debt, but with a broader macroeconomic framework card.
I hope that at the end of my remarks, a minister and the government will announce, just in time for Christmas gift purchases, that they will mail out a broader macroeconomic framework to every Canadian household, so parents could, in collaboration with Santa Claus, make sure there are gifts under the tree for every child in these impossibly difficult times.
If we are going to ask the simple question of where the money comes from, why do we not ask the yet simpler question of what money is, because sometimes it is important to go back to first principles in order to make sense of this crazy world of ours? Money, of course, is merely a technology by which we transport value over time and space. Without it, our spaces would have to consume in the present everything that it produces.
Most species do. They have to eat what they kill right away, lest it be stolen or spoil. Squirrels can squirrel away a bit, which is a good habit the government should learn from, but most species have to use it or lose it.
We developed a technology to allow two people exchanging things to go ahead with their exchange. Even if each did not have the ability to supply the other with what they wanted, they could simply use this technology, called money, to transport the value between each other across time and different geographies.
Over time, money has taken many forms. In one island in the South Pacific it was a ledger carved on scarce limestone. In some places it was beads or seashells. In prisons, they use cigarettes. When I was a kid in school, it was candy. Throughout history it became metal, some precious, some brute. We had gold, silver and copper. Many different means of translating value across space and time have been used.
Politicians have found it a nuisance to pay their bills and use money with integrity. Back in 1215, poor old King John was forced by the barons and the commoners to sign this nuisance of a document called the Magna Carta, the great charter. In that document was inscribed the principle that the crown could not tax what the people had not approved. That principle is still in place here in this Parliament today. The government cannot spend what we do not vote on, 800 years later.
When we look around and see the beautiful green here, we know where it comes from. It was the colour of the fields in which King John was made low. That green should remind everyone that the people in the fields doing the work are the ones who produce the money we spend around here. That might have been a better answer in the committee than “the government's broader macroeconomic framework”, but I digress. After King John was prevented from taxing what people had not approved and was forced to go back to the commoners to get their permission to take their money, he and his successors became increasingly creative in sourcing the cash they acquired.
Years later, King Henry VIII, who is more famous for clipping off the heads of his subjects, decided that he could get his hands on money by clipping coins. He and his regime would clip off the edge of a coin. That way, they could melt those edges down and make more coins. Back then, it was hard to make coins because it was the British pound, which was a pound of silver. By clipping off a piece, they could melt it down and create more coins and Henry could inflate the value of currency in his hands, thereby deflating the value of the wages that his peasant class earned.
He got even more creative later on, which is how he got his famous nickname. He would have his minters melt down the British pound and re-mint it with just a tiny coating of silver around the outside of a copper coin. People thought they were getting a silver coin. Meanwhile, on the inside, they actually got copper.
The problem was this: Being the egomaniac he was, he did not want a profile shot, so he had his face placed facing outward on the coin, so it stared everyone in the eye when they looked at it. Because his nose protruded out from the coin, it would rub against the inside of people's pockets and the silver would scrape off the tip of his nose. Then they had a silver coin with a red nose, which is how he got the nickname “old coppernose”. Every time someone saw that red copper nose, they knew the king had stolen the real value of their money.
Throughout time, other politicians found other creative ways. Dionysius, who was a Greek dictator in Syracuse, actually took all the one drachma coins and restamped them to give them a value of two drachmas, so all of a sudden he had twice as much money.
I hesitate to tell that story in the House because I worry the might think he could do the same. If we run out of money, we can always get more and turn loonies into toonies, and toonies to fours. That might be the next creative idea by which government could get its hands on money.
Throughout the 20th century, we saw this same tactic of cash creation. The most famous example was in the early 1920s in Germany. It created so many new units of account that inflation ran out of control. People needed to have a wheelbarrow full of cash in order to buy a loaf of bread. If people went to the bar to try and drink away their inflationary blues, they ordered all their beer at the beginning of the night because, as the minutes went on, beer became more expensive.
We, in this part of the world, have not been immune to this inflationary disease ourselves. During the post-war era, we inherited monstrous debts from fighting the fascists, but governments had hard money from the end of the war until the early 70s. We basically operated on an American-led standard. If someone had a U.S. greenback, they could exchange it at a rate of $35 per ounce of gold.
In that period, we had an enormous amount of prosperity. The Americans paid off their war debts here in Canada with solid currency. We wrestled the inflationary beast to the ground in the post-war era. We took our record debts, which we inherited from the war, and we paid them off. We increased the size of the Canadian economy by 300%. By 1973, we had basically become a debt-free country.
However, what happened in the 1970s? President Nixon wanted to spend on warfare and welfare. Of course, the Americans were bogged down in Vietnam, which was a costly enterprise, and President Nixon wanted to keep his popularity at home, so he decided to spend, spend, spend.
In the decade that followed 1971, not only did they unleash the American dollar from any particular standard, but they also increased the number of U.S. dollars in circulation by 150%, while output only grew by about 39%. In other words, the amount of money grew about four times faster than the amount of underlying output that the money represented.
Here in Canada, we had Pierre Elliott Trudeau. He looked down at all the inflation that the U.S. government was creating. It had reached double-digit inflation down there. It was a total inflationary crisis. The American dollar was devalued on an international basis and was incapable of buying affordable petroleum on the world market. They like to blame OPEC, but they took no responsibility for the fact that the unit with which they were buying oil on the international markets was itself devalued.
Trudeau looked at all the misery in the United States. He looked at how people were lined up at gas stations waiting for an hour and a half to gas up their cars. He saw the poverty that was overtaking inner-city streets. He saw the expanding wealth gap in the United States of America. What did Pierre Elliott Trudeau say to all that? He said, “Let us have some of that up here.”
Then he started printing money here in Canada and massively increased the money supply within Canada. I have the data right here. Between 1971 and 1981, the money supply in Canada grew by over 200%, while GDP only grew in real terms by about 47%. We can imagine that money is growing in supply at more than four times the rate the economy is growing, so we have more dollars chasing fewer goods. What does that get us?
Some hon. members: Inflation.
Mr. Pierre Poilievre: Madam Speaker, that is right. We all learned that in grade school, but apparently some lessons need to be learned and relearned here in this House of Commons. What happened was by the early 1980s, inflation had risen to 12% in Canada. The government claimed that if it kept printing money, this would stimulate the economy and create jobs.
What it delivered was 12% unemployment and 12% inflation. It is worth spending a minute on this. Why is it that high inflation actually kills jobs, contrary to what the so-called experts always tell us? The answer is that prices are information; prices are some of the most powerful and condensed forms of information ever known to humankind.
The great economist Milton Friedman explained how complicated it is to make a pencil. He basically said that the lead comes from a lead mine in Asia; the rubber comes from a rubber tree in another part of the world; the timber might come from a forest in the western United States, and the paint might come from a titanium mine somewhere in Africa. All these people are working together to make a pencil. None of them actually know they are making a pencil, but they agree to make the ingredients of the pencil because they are zapped with a laser beam called “the price signal”. The price is high enough to incentivize them to make the investments and do the work to supply the goods.
The consumer knows what it costs to make that pencil, not because they called all the mines and all the forests and asked them all to feed in the price, and pulled out their calculator and figured out what it should cost to make a pencil. No, the consumer knows because when they walked into the store there was a price, and that price basically zapped to them the cost of making the pencil; the hundreds of people who unknowingly conspired to make it communicated that information to the buyer just like that. Then the consumer calculated in their mind that the pencil was worth more than the money they had to spend to get it. Therefore, all of those laser beams led to that wonderful little transaction that brought the consumer home a pencil.
Here is the problem with inflation: It messes with all those information signals.
Just last week, I was in New Brunswick and I was speaking to a gentleman who was in a recycling business. He signs five-year agreements to do the recycling work for other companies. Here is the problem: When he does not know what the price is going to be over the next five years, he does not know what he should charge. He locked in contracts that expected inflation to be the normal 2%. Now, we have 5% inflation and it is potentially rising. The difference is that over a five-year period, instead of having 10% total inflation it will be closer to 25% or, with compound interest, 30%. Now, he is getting actually 20% less in his fifth year than he thought he was going to get.
Therefore, all these information signals that allow people to exchange work for wages, product for payment and investment for interest are totally scrambled by inflation. The technology that is supposed to allow us to transport value through space and time is scrambled. It is like scrambling the hard drive on a computer. All these signals mess with the ability of humans to exchange value with one another, and when that system breaks down, everything breaks down. That is why inflation has almost always led to social disorder.
It also allows those with the greatest means to profit the most, because they can move their money into things that are inflation-protected, like land, buildings, private businesses, stocks, bonds and countless other assets that inflate in price. Meanwhile, the people who actually live off their wages see a real pay cut. Those people who are wealthy enough not only profit by watching their assets inflate in value, but the real value of the debts that they take on shrinks in inflation-adjusted terms. Therefore, those who have access to the financial system get vastly richer as their debts shrink in real value and their assets inflate; and those who do the work, the people in the fields for whom we painted these floors green, watch the fruits of their labours wither away by this inflation.
Therefore, I rise today to call for a restoration of the real integrity of our money, to bring back the meaning of money, which is to transport value over space and time, to restore free markets among free people and to put the commoner ahead of the Crown.
:
Madam Speaker, first, I am not an economist, but I do have a basic understanding on how an economy works. I have always found it somewhat interesting when my colleague from goes into a diatribe about all the theories out there. He does tend to have that heavy right slant.
When I go back to my days at university, I think of the economy when theorists would have the whole dog-eat-dog world type of thing. I guess I am closer to the Keynesian type of theorist in recognizing that there is time for a government to come forward and take tangible actions to support our communities.
The member made reference to the fact that I should take notes. I did take a couple of notes as the member was speaking, because I wanted to make reference to a few of the thoughts he was espousing. He talks about the money. I will elaborate on that point, maybe not from an ivory tower perspective, but rather from the perspective of how I believe my constituents would like to hear it, and that is as plain as possible, my basic understanding of it.
He talked about where the money came from. I hear those types of things from members opposite, and no one uses them more than the member for . It is important for the people, who might be following this debate, to understand that the member is the finance critic for the Conservative Party, meaning the Conservative Party takes its lead from its leader sometimes on finance issues and at other times from the member for Carleton.
I do not say that to scare people. I say it because people should recognize why the member for says things. There was a time when the Conservative Party did not exist. There used to be a Progressive Conservative Party and the Reform Party. The member for Carleton would fit in quite well with the Reformers.
It is interesting to see the contrast when the leader is trying to say the Conservatives are moderates or somewhat moderates. After all, that is why the Conservatives flip-flopped on the carbon tax issue, and that upset a lot of the old Reform members. That is why members of the Conservative Party, members of the caucus in particular, have a certain appreciation and respect for the member for , because his job is to keep that party to the right. He does a pretty darned good job of doing keeping them on the extreme right. Some of them applaud and I do not blame them for that, if that is their basic principle.
The member for talks about government expenditures and how wasteful they are. I would argue that government expenditure is a good thing. That how we support real people and businesses. That is why governments brought in programs during a very difficult time, not just in Canada but around the world. It was a global pandemic. This government recognized that we did not need to take the approach to economics that the member for would take. We needed to think about government spending that would support Canadians, small businesses, to have the backs of Canadians. That has been a first priority of the , the cabinet and Liberal members of Parliament from day one.
That was one of the reasons we went into an election, and were given a renewed, stronger mandate. The plan that we provided to the House of Commons is, in fact, supported by a vast majority of Canadians. Only a good portion of the Reform element of the Conservative Party calls into serious question why the government has made these expenditures. We should think of the consequences had we not provided the support, had we not listened to what Canadians wanted, had we not done the consultation that was so critical or had we not worked with the different levels of government, the non-profit organizations and many stakeholders, including health care workers and so many others. What would have been the alternative?
What would have happened if we had focused our attention on the Conservative Party's ideas, in particular the finance critic's ideas? We would not have had programs like the CERB, which provided millions of Canadians financial support during the pandemic, financial support that put dollars in their pockets so they could pay their bills, whether it was their mortgage, rent, utility bills or to put the food on their tables.
The Conservatives, led by the member for , repeatedly talk about the deficit, that right-wing element of the Conservative Party. Yes, the CERB program did cost a considerable amount of money, but had we not invested in that program, imagine the suicides, the family breakups, the costs resulting from mental health and the impact it would have had on our economy. Those are the reasons the acted quickly in making the statement that we would have the backs of Canadians and we would be there for them.
Let us think of the business supports we provided over the last 18 months. In particular, let us focus on our arts community and small businesses. The wage subsidy program allowed employers the opportunity to keep employees working. It ensured that many thousands of jobs would still be there when we recovered. We have been proven to be correct with that program.
We can think of the rent subsidy program. How many small businesses would not be here today had the government not provided support in the form of rent subsidy. The bills continue to come in, the suppliers still want to be paid and landlords still want to be paid. That program provided tangible support for workers and sick pay. These things made a difference and helped Canadians.
When we went to the polls back in September, Canadians agreed with the Liberal plan. That is why we are on the government benches. They agreed with the progressive policies that we had put in place. That is why a majority of Canadians supported parties that understood how important it was for government to continue to play a role in supporting people, whether they were seniors, people with disabilities, other vulnerable Canadians, Canadians who were losing jobs or Canadians trying to keep their businesses afloat. These are the types of things that really matter, and progressive parties in the House did well as a result.
What is Bill ? It is an extension of the programs I just finished talking about in one form or another.
Around this time last year, I would have been standing in this place, saying that the Conservative Party was playing a destructive role in the chamber. I am not surprised that the member for and the Conservative Party has decided to bring forward this motion, which proposes to divide the Bill . The bill went to committee on December 2.
However, by literally dividing the bill into two bills, this is another way the Conservatives feel they can slow down legislation, possibly preventing it from being passed. What is next if this motion passes? Are they going to suggest that we need to strike up more committees to meet on these issues? Is this yet another indication from the official opposition that it wants to frustrate the legislation? Do the Conservatives not realize the cost of this legislation not passing?
Back on October 21, the indicated that the government had targeted business support programs, that it wanted the Canada recovery hiring program; create the tourism and hospitality recovery program and hardest-hit business recovery program; and establish the Canada worker lockdown benefit. The Prime Minister wanted to see the House of Commons act on this quickly. That is why it was no coincidence that when we were back in the House, literally, Bill was the very first piece of legislation. A good way for the government to express its priority is by the first piece legislation it presents.
When we first were elected in 2015, the first legislation created the framework for the tax break for Canada's middle class. It was also the legislation that established the need for an additional tax on the wealthiest 1% in our society. Interestingly enough, the Conservatives voted against that legislation. At the time, that was our priority; it was our piece of legislation.
We can look at what is happening around our country today. If we go back to the press conference the held on October 21, what will we find? If members do want to believe me, they should consult their constituents. Every region of the country is concerned about COVID-19. Everyone in the country wants to see a higher sense of co-operation taking place on the floor of the House of Commons. How is dividing such a critical piece of legislation, which, in essence, encapsulates in good part what is on the minds of Canadians, going to help in getting it passed through the House?
The bill went to committee back on December 2, and the committee already has had six meetings, and I think today is its seventh meeting. What is the real purpose of this Conservative Party motion today? We were supposed to be debating the throne speech, which deals with another aspect. It is the plan on how we continue to move forward.
The content of the throne speech, which we are not debating now because of this silly motion, highlighted the fact that we are still dealing with COVID-19 and that we still need to do what we can to minimize its negative impacts. Canadians realize it and have stepped up to the plate. I believe 86% of Canadians over the age of 12 are now fully vaccinated.
We recognize the strong leadership role that each of us has to play, but let us also recognize the important role that our communities have played. An 86% fully vaccinated community is a healthy community. We can still do better. We can still get more people fully vaccinated, but until we have achieved that optimum level we need to continue to be there in very real ways.
Some of our communities could be significantly hit into the future because of coronavirus mutations. That is one of the reasons why there is an important lockdown measure. We want Canadians to know that in the House of Commons, at least among the New Democrats, Bloc, Greens and Liberals, people understand that we need to have progressive measures in place to support real people and ensure that our communities are healthy into the future.
By investing and by supporting communities, we will all benefit collectively in the long run. Had the government of the day followed the Conservative Party, in particular the Conservative who is worshipped by many within the Conservative caucus, the programs that we have today would be in question. There is absolutely no doubt in my mind that we would not have had the types of progressive programs that we have today.
As a result of those programs, we are in a far better position to recover, and we see that in the numbers. We actually have more people back and employed than we had pre-pandemic: far more on a per capita basis than the United States and other countries. The reason for this is because the government supported Canadians and businesses. Businesses were able to survive and people were able to overcome the biggest issue of the pandemic, specifically vaccination. Canada has led the world because there has been a team Canada, except for the Conservative Party, here on the Hill that has consistently talked about the importance of being fully vaccinated. As much as possible we have provided programs that would make a difference and would provide the disposable income that would save jobs and save businesses.
I would ask the Conservative Party to rethink its motion, and maybe put the member for 's economic theories on hold for a while. Let us see if we can pass this legislation as it is out of committee.
:
Madam Speaker, I want to say right away that I will be sharing my time with my wonderful, passionate and fascinating colleague from Berthier—Maskinongé.
I will start by being a good sport because I always like to find the good in any motion, bill or supply day topic that is presented. I will start by saying what I like about it. However, unfortunately, the thing I liked the most today was the historical content in the member for Carleton's speech. Just between us, if one day he decides to create a podcast with stories or interesting facts from history, then I will be the first to listen to it while driving home on the 417. He always has very interesting things to say. I will give him that.
I am, however, going to put an end to the suspense here. My Conservative colleagues might be disappointed, but the Bloc Québécois does not intend to support the motion. We are sorry about that. I will explain why, even though I think they may already have some idea. We do not intend to support the request to split this bill because we think that the two parts of the bill that the Conservatives want to split go together.
It is as though we are being told that on the one hand, there is a pandemic affecting businesses, and on the other hand, there may be something that could possibly affect individual workers, so maybe one day, we could address this issue differently. In reality, it is still the same pandemic that is affecting both workers and businesses. Since the bill covers two aspects of the same problem stemming from a single pandemic, I do not understand the motivation for splitting it as proposed.
As my colleague from Winnipeg North mentioned, people are waiting. I feel like coming back to that, although the Conservatives mentioned it too. We lost time because of an unnecessary election. In the meantime, people have suffered and still need support.
I do not see the point of taking a bill that has already passed at second reading and been studied in committee, and bringing it back to split it and start the process over again. In the meantime, there are businesses that will suffer from the delay in the process. I think this part was understood and that is the one the Conservatives want to hold onto, but there are likely even more ordinary folks who could suffer as a result as well.
We lost too much time with the unnecessary election to make people wait and suffer even more, when they have already gone through enough, in our opinion.
As we said during the election campaign, the initial benefits that were created were not perfect. They quite likely contributed to the labour shortage we experienced, although they were not the only factor. I am not saying that Bill C‑2 is perfect and that is why we do not want to split it, but I do think that if the bill goes to committee, it can be discussed and improved. A review of the benefits was warranted, and it still is, which is why it is important for the committee to study not only the wage subsidy and rent subsidy, but also the so-called individual benefits.
We are suggesting that there are still some workers who could be added to the list of benefit recipients. The Bloc Québécois has spoken about this a lot, but I am mentioning it again because it is important. I am thinking, in particular, about workers in the arts and culture sectors. It has been two years since musicians and actors were able to take the stage at any big shows, festivals or events. If we do not support these people, they could end up leaving the sector, taking their talents with them. Our arts and culture sector could lose its stars, its talent, its creative geniuses it they cannot earn a living. At some point, they will decide that half a loaf is better than none. If they have no way to support themselves, they could end up moving on to something else, and we would lose that talent.
The question we should be asking ourselves is: Are we prepared to pay the price of losing these creators?
Technicians, stage riggers, and people who run cables for sound systems told me that more and more of them have been leaving the field to go work in the mines, where the skill set and schedules are similar. These are not 9-to-5 jobs. These are two-week stints, like being on a concert tour. Mine work pays well, so if we do not support these people, they may decide to stay there. If we lose access to their expertise, we will be very sorry once the economy is back up and running again.
That is what is on my mind when I think about how it would be good to let the Standing Committee on Finance to keep talking about individual benefits by not splitting Bill .
It would also be good to keep working on things that affect businesses. This hare-brained Conservative motion could end up delaying work on the Canada emergency wage subsidy and support for businesses that need it.
The Bloc Québécois would like to share some thoughts with the committee regarding which areas could also benefit from government support through regulation. We are just waiting for the minister to confirm that she will be able to open up areas through regulation.
Two sectors in particular come to mind, one of which is extremely important in Quebec, namely the aerospace and aeronautics sector. This sector is one of the hardest hit by the current crisis, given that there is less travel and aircraft construction. We must support those businesses.
On top of that, so many manufacturers have been indirectly affected by the pandemic. For instance, there is a supply shortage of microprocessors, which has caused many manufacturers of trucks, armoured vans and various automotive products to have to slow down their production lines, not because of a labour shortage, but because of a parts shortage. This is a side effect of the pandemic, and these people also need help.
Ultimately, all I am seeing today is an attempt to slow down the process and delay the passage of Bill in its entirety or in part. The Conservatives are forgetting that, behind all of this, there are people who need our support, and that is the unfortunate part. I am not saying that we have to fix the mess made by the government, which delayed things with the election. However, we do need to realize that if we create even further delays, people are going to suffer. If we think about it, we are kind of doing what we accused the government of doing.
It is ironic to hear the Conservatives say that the government delayed recalling the House and that the election was pointless when they are doing the same thing by delaying the passage of bills. They are saying two different things, and I do not particularly like it. All that is to say that I do not see any merit in taking a bill that has been passed in principle, that can be improved, that is being improved at committee, and then splitting it, slowing down the process and returning to the House to do the same work over again. That is not helpful. There is already enough duplication of work with two levels of government, the federal government on the one hand and Quebec and the provinces on the other hand. We do not support making more work.
As long as there is a pandemic, it will affect both businesses and individuals. Bill C‑2 addresses both because there is only one pandemic, and therefore there is just one problem with multiple consequences. We must not attempt to separate out the consequences and deal with them individually. Instead we must take a holistic approach to the problem because it is the result of the same situation, and that is the pandemic.
:
Madam Speaker, my esteemed colleague, who is so brilliant, not to mention extremely kind, always sets the bar high, so I am going to seem a little less clever than I usually am.
What are we doing here at 1:30 p.m. on a Friday afternoon? We have work to do, but we are considering a motion that came out of left field and seeks to split a bill in two, meaning that it will take longer to pass. What is more, this motion comes from a political party that spends at least half of its time denouncing the government opposite for being too slow.
I am trying to understand, but I must be missing something. What is the strategy here? We are accustomed to seeing attempts to buy time, score political points and annoy the government, but what is the objective here? I would like my Conservative friends to at least tell me that much, because I do not understand what is going on. Is the goal to slow down the work so they can then accuse the government of dragging its feet? Sometimes I wonder.
People are waiting for that support. Well-meaning people here who were elected by the public want to do good work on bills and make proposals in committee. However, here we are, in the process of losing an afternoon to entertain the idea of splitting this bill in two, holding two separate votes, doubling the amount of time to do the parliamentary work and doubling how long it will take to get the support to those who need it.
Sometimes it is hard not to throw a fit. I am going to have to stay calm. This is not the first time that has happened to me in the House.
My colleague from did a good job describing our party's perspective, so I will focus on common sense and address my Conservative colleagues. People at home are watching them.
One week they see the Conservatives making grandiose speeches about the urgent need to help our businesses, but the next week they see them actively trying to slow down the passage of a bill.
I am not saying that this bill is perfect, and I am certainly not saying that this government is perfect. However, the bill before us is a good starting point, and we need to pass it quickly.
Earlier, my colleague said that we are not experiencing two different pandemics. We are all going through the same crisis at the same time. Can we take our work seriously for the common good and quickly pass a bill that will help everyone in the meantime?
If we split this bill in two, who are we going to help first and which part are we going to vote on first? What are the Conservatives trying to accomplish? Are they trying to deny help to businesses or do they want to deny help to individuals? Would either option be justified?
I believe that the Conservatives are not against either one. When they put their questions to me, they can tell me if I am mistaken. I would ask them to do that for me.
I hope their questions will do me good, because I do not feel great right now. When I am in this place, I am supposed to be working on behalf of the people, but that is not what I am doing right now. Instead, I am trying to prevent members from slowing down the work that we do for people. That is not what we usually do, and furthermore it is a little appalling. Yes, I am not my usual pleasant self. Could we get down to work for the people, who are watching?
As was mentioned earlier, we are already way behind. I said that the government is not perfect, and a good example of that was that it was in a hurry to call an election in the midst of the Afghanistan crisis and COVID-19, which was not over yet. However, Parliament was working just fine. I cannot speak for the other parliamentary groups, but there is always one that is hard at work in this place, and that is my team.
Even though some people in English Canada might think that we are here to cause problems, for the most part, the Bloc Québécois is here to find solutions. We respectfully make suggestions because we are here to improve the lives of our constituents. We work for everyone. I am not working against the Liberals, Conservatives or New Democrats. I am working for the people of Quebec.
People need these assistance measures to be extended, and the bill we are studying is not perfect. We have mentioned the topics of self-employed workers, in particular ones working in the cultural sector, but I know others who have not been able to get back to work.
Instead of sitting around this afternoon in an attempt to block a stalling tactic, could we not send this bill to committee so that the committee can study it and make suggestions? Fortunately, based on what I understand, three political parties are against the motion, so it will only have cost us half a day. Nevertheless, time is money and the clock is ticking.
We were called back to the House 62 days after the election. It took a very long time for that to happen. In most of their speeches, the members from a certain party say that the government is not doing anything, that the election was useless, that the Liberals took 62 days to recall Parliament and that we should have just kept working. However, that same political party is preventing us from working this afternoon. I censored the last word of my sentence, which proves that I am not getting too carried away.
The Bloc Québécois spoke about shortages of microprocessors and about individuals who need help. I am now going to talk about something that my Conservative colleagues like to bring up a lot, and that is inflation. I think they are right in bringing it up all the time, and I am not criticizing them for that, quite the contrary. Inflation is a real problem and we need to help our fellow citizens, so let us take action.
Individuals, employees and businesses need benefits, and 58% of SMEs say that they are not back to pre-pandemic levels. That means that nearly six out of 10 businesses do not have enough revenue. Is the government going to wait for those businesses to shut down? Is it simply going to advise people to apply for EI in the hopes that they are among the few who are eligible?
What we need is real employment insurance reform, but nobody seems to be able to do that. We might not have to talk about self-employed workers so much if the EI system were a real EI system, not a disguised federal government funding program. We need to get money out to everyone and deal with seasonal gaps. We need to talk about these things because they affect real people.
We also have to talk about improving access to sick days because of COVID‑19, the wage subsidy, the rent subsidy and so on. We have to protect the social fabric and pay attention to it.
I am really looking forward to answering my Conservative colleagues' questions. I have asked for this at least three or four times, and I hope they will ask me at least one question. I would like the Conservatives to explain to me what is going on this afternoon because I do not understand. There are several sectors we need to talk about urgently, and we need to move forward.
It will come as no surprise to anyone that the Bloc Québécois is going to oppose this motion. It was said earlier. We hope that we will be able to move forward as quickly as possible afterward.
If we do end up wasting even more time on this, the government might move time allocation to limit debate, and that motion might get support from its NDP friends. If that happens, I really hope the Conservative Party members will not complain. A certain political party is responsible for wasting our time. It is backing us into a corner and will force us to adopt the bill quickly. I do not need to say which party that is.
:
Madam Speaker, “we are all in this together”. That is a phrase that has been uttered a lot since the pandemic first struck the country and for a time, that was true. There was a real sense of solidarity in our communities. We felt it across the country; we felt it here in this place, such as that was.
In the very difficult days of the early pandemic, we were able to secure proposals to help people that went above and beyond the government's initial proposals, because there was a real spirit of collaboration and working together to get things done and get them done quickly. That is why it was not a $1,000 a month benefit as the government initially proposed, but a $2,000 a month benefit for people who had lost their employment. It is how we were able to negotiate a benefit for students who originally were not going to be captured by the government's plan.
We negotiated a one-time payment for people living with disabilities and for seniors, although what we would really like to see is the government take responsibility for ensuring that they have a guaranteed livable basic income at a rate that is above the poverty line, something that we have not yet seen.
We were able to get meaningful improvements through negotiations in this place and that is what it meant for a time to say that we are all in this together. That is not the approach that Bill represents. It is not the approach that it represents in its substance, but it is also not the approach that the government has taken in the way that it is managing Bill C-2 through the House, in the early stages of its development before it was tabled. There was no discussion with other parties as far as I know, certainly not with us prior to the announcement on October 21, and there has been very little since.
The motion that is before us right now is about dividing even more. From this moment of solidarity and over the course of the last 20 months or so, the government has slowly been edging back from that sense of solidarity, and with Bill , actually just turning its back on the idea that the just ran on in a campaign in September saying that they would not leave anybody behind.
However, splitting the bill would make that problem worse because there are two components to the bill. One is a component that provides help to businesses directly and to workers in those businesses. The other is something that is supposed to be there for workers who are self-employed or workers whose businesses do not opt to apply for the wage subsidy for various reasons, or maybe whose businesses do not quite meet the qualifications, but who nevertheless find themselves not able to work. We know that there are businesses that have let people go during the pandemic, but nevertheless did not qualify for the wage subsidy. There are all sorts of ways in which workers will continue to need help directly. In fact, we know that in October, there were still 900,000 of them that were needing that direct support.
We are not going to get to the point where we are negotiating effective solutions if we are picking off industries or particular players and advancing the programs that are there for them and leaving the others out of the discussion, particularly the ones with the least amount of economic clout and leverage themselves, the individual workers. Individual workers in exposed industries like hospitality and tourism or arts and culture are not a big business with their own personal lobby that can come to Parliament Hill and meet with 338 different MPs, just about one for every day of the year. They do not have that kind of money and that is why they are not reflected in the government's proposals in Bill .
If we are going to solve that problem, we need to keep the components of the legislation together so that we are not picking some winners and allowing others to be losers any more than is already the case. That is why we in the NDP feel very strongly it is important to keep the bill together, a bill that frankly, we do not support because we do not think it goes far enough.
However, if we are going to get back to a place where we can have some meaningful negotiation, a situation that we did obtain in the last Parliament, then it is important that we are negotiating for everybody. We cannot leave the most vulnerable and those most hard done by in the current economy behind while accelerating the help for industry players, who have also been very much hard hit. It is tough, and we do want to see that help go to that industry, but we do not want to see some being helped and not others, or say that we will speed one up, but leave another to languish.
We need to maintain that sense of us all being in it together, instead of being picked off one by one in a divide-and-conquer strategy to ultimately roll back pandemic support for Canadians. That is where we actually see a pretty close affinity of intent and interest between the Liberals and Conservatives right now, who are talking about the extent to which they are going to roll back those supports. The widespread agreement there is that the supports are going to get rolled back.
The supports rolled back pretty naturally under the conditions of the program. Regarding the CRB and the CERB, at one time there were about nine million Canadians availing themselves of the CERB. On its own, without government kicking anyone off the program, by October this year there were just under 900,000. That is a reduction in the program of over 90%, and therefore, a reduction of over 90% in the spending. As people could find work, they were leaving the program.
How many times have we heard Conservatives talk about how they want to see program spending reduced? This is a program whose spending had been reduced by over 90% because we in the NDP actually believe that Canadians do want to work. We believe that, but we also recognize that in the pandemic economy, such as it is, that is hard to do.
We recognize that there are a lot of people who desperately want to work, but the jobs are not there for them. It is not because there are not jobs available, but it is because people lost work in a particular sector, with a particular set of skills and a particular education, and those are not necessarily the jobs that are available now. Therefore, there is some work for us to do here, in conjunction with employers and employees, to talk about what jobs are available, who is available to fill them and how we train the people who are available to work in the jobs that are available. However, that is not the discussion we are having here.
The discussion we are having here is how to go from a program that was still supporting 900,000 Canadians who needed financial support in difficult economic times to a program that, to date, does not even apply in one single place in the country and that will not provide financial support to one single worker in the way the CERB did just a month or two ago. That is a big difference, and that difference is what the Liberal Party and the Conservative Party have in common.
I think the Conservative finance critic sometimes thinks he is a champion for workers. He certainly said as much. The member gave an interesting history lesson about the Magna Carta. He even waxed poetic about how the green here represents the commoners who were there at the Magna Cart when they signed a lovely deal that meant that there would be no taxation without representation. Indeed, he talked about the peasants.
He needs to know, and this is his blind spot and the blind spot of both Conservatives and Liberals, that the people who signed the Magna Carta with King John were not the commoners. The people who signed the Magna Carta with King John were the aristocrats and the barons who ruled over the peasants. They took taxes and whatever they wanted from them without any representation for them. That is the problem.
The Conservatives have this kind of mystical understanding of the Magna Carta, that it was this great progressive moment. It was an important moment on the road to democracy. A little over 600 years later, universal male suffrage would come to the United Kingdom, and it would be another 50 or 60 years before women had access to suffrage on the same terms as men in the United Kingdom. Therefore, yes, it was a milestone that laid the groundwork for some progress centuries later.
I think the Conservative misses a few steps. It is not an innocent mistake, and it is not an inconsequential mistake. Those same barons who were there to sign the Magna Carta are not unlike the 1% today who, as the Parliamentary Budget Officer reported this week, own 25% of the wealth in Canada now.
That was not always the case. Around the turn of the century, it was more on the order of 11% or 12%. Now 1% of the population is sharing 25% of the wealth in Canada, and 40% of the population is sharing 1% of the wealth. That is the tale of the one per cents in Canada right now. We have 40% of people sharing 1% of the wealth and 1% of people sharing 25% of the wealth.
The way we got there has a lot to do with both Liberals and Conservatives. That is why the Conservative wants to focus so much on the Bank of Canada lately. He does not want to talk about all the capital that was hoarded over the last 20 years or so. That is now being used in the real estate market, and had been used in the real estate market to cause significant inflation in housing well before the pandemic struck. There is no question there has been massive housing inflation since the pandemic began, but that is not where it started. It has been going on for a long time.
It has been going on since the corporate tax rate was cut from 28% in the year 2000 to just 15% today. We have seen overwhelming increases in the amounts of dividends that are paid out. Who are some of the people who are gaining the biggest amount of money from dividend payments as a result of corporate tax cuts? They are that 1%. That is how we got to the point today where 1% of the people own 25% of the wealth.
In the year 2000, the capital gains inclusion rate was cut from 75% to 50%, and nine-tenths of the benefit of that tax cut over the last 20 years has gone to the top 1%. That is cash in hand for them, and they have been sitting on it until they had a moment to spend it in a way that would create more money, just as the Conservative likes to talk about.
However, they are not getting all of that in liquidity from the Bank of Canada. They are getting it from increasing returns as corporations pay less and less of a share of government revenue. In Canada 65 years ago, corporations paid 50% of government revenue. Today, they pay 20%. That means individual Canadians are picking up 80% of the tab when they used to have to only pick up 50%.
The Conservatives will say, and Liberals will join them in saying, that if we cut their taxes they will invest back in the economy and that will create jobs and wealth. That is true to a point, except the cash holdings of corporations and the wealthiest individuals have skyrocketed over the past 20 years while the corporate tax rate went from 28% to 15%.
In fact, investment in real assets and productivity has stayed constant at around 5.5% of GDP. Even the late Jim Flaherty, whom some might remember, sat on the Conservative side of the House and scolded corporate Canada at one point for the extent to which it was failing to reinvest money from corporate tax cuts back into the economy.
The amount of $25 billion is what the Parliamentary Budget Officer, hardly a partisan office, has estimated that Canadians are losing every year to tax havens legally. That is how we got to the point that 1% of the population in Canada now owns 25% of the wealth. That has about doubled over the last 20 years or so.
There is a story to tell about the Magna Carta. There is a story to tell about wealthy individuals with a lot of pull and influence being able to constrain the government in a way that benefits them while they squash the people under them and take the value of their work for themselves.
Unfortunately, this is not that old of a story. It is an old story in the sense that it has been going on, but it is not a history lesson. It is a contemporary economic lesson, and we need to figure out how we are going to change that. That is why I am proud to have run on the idea of a wealth tax for fortunes of over $20 million, which does not cover a lot of Canadians.
It is pretty hard to get outraged at this idea for people who have amassed more and more of the economic pie. Their proportion of the pie has grown far more quickly than the pie itself, which means more and more people are sharing less and less, and people wonder why we do not have money to fund public services. It is not that we just magically have less money; it is that the people at the top are paying far less than they used to. They are hoarding that wealth, or they are spending it on themselves or they are using it to make investments in the real estate market, which is driving up the cost for everybody else. That is the real problem.
Therefore, I am always glad to talk history and economics with the Conservative finance critic, but there are some facts missing from his version of events when he talks about the Magna Carta. The people who are forgotten in his story are the same people who are being forgotten in Bill . They are the people who have been unable to get back to work and were depending on a government that said it would have their back. However, they found that within a month after the election, with two days' warning, the very same who said he would have their backs turned his back on them. This is what we are dealing with in Bill . If we are going to get to a decent solution, we are going to do it by talking about everyone at the same time instead of hiving them off into sections, leaving some to languish and others to get the help they genuinely need.
Make no mistake, the New Democrats are in favour of people getting the help they need and getting it rapidly. It is why we have not had any secrets about what we think needs to happen and what the government needs to do as we pass Bill . In fact, we will have some suggestions on how it can include these measures in Bill ; how it can stop the clawbacks of the GIS, the Canada child benefit and the Canada worker benefit; how it can implement a low-income CERB repayment amnesty so it is not chasing after people, who are already losing their homes, for about $14,000 in debt. In some cases, these people are negotiating payment plans for $10 a month. How long it is going to take for the government to get its $14,000 back at $10 a month?
Meanwhile, some of the largest publicly traded companies, like Chartwell, TELUS and Bell, gave huge dividends to their shareholders during the pandemic and increased the amount of their annual payout by anywhere from 3% to 6%, yet the government has not asked them for a dime back. That is the story of the barons getting together to design a system that would serve them so well, the system we have inherited here, and that is part of the tradition of this place in more ways than one.
We have ideas about how to end the clawbacks. We have proposals for a low-income CERB repayment amnesty. We have proposals on how to ensure that people in the arts and cultural sector and the tourism and hospitality industry can access the only benefit that would be left, which is the Canada worker lockdown benefit, in terms of a regular payment to people who are unable to work. The Liberals have laid out the industries in part 1 of the bill. All they have to do is say that anyone who earns their income in an industry named in part 1 of the bill will have access to the Canada worker lockdown benefit, whether there is a lockdown order in their part of the country not. The government already recognizes that those industries are in distress regardless of whether there is a lockdown order in effect.
These are just some of the proposals that we will be putting on the table. If the government adopts them, it can see swift passage of the bill in this place, and that is what it will mean to leave no one behind.
:
Madam Speaker, I do not have a lot of time, but it would be a waste of time anyway, since the Standing Committee on Finance is already studying Bill .
I am surprised that the Conservatives would move such a motion today, considering that they are always advocating for less red tape.
[English]
I am surprised that the Conservative Party would introduce such a motion today knowing full well that the finance committee had already started to look at the bill on December 7. They sure know because the member for likes to give us lectures for about 20 minutes at a time. Probably the whole reason for this motion today was so that he could speak for 20 minutes, give us a lecture on rebel news economics and publish it on his Twitter, if it is not already published now.
In fact, as I speak, the finance committee is continuing to look at this bill.
We see the news across the world and there was some good news in November. Our economy added 153,000 net new jobs, but COVID is still real and we do not know what may happen in January, February and March. That is why it is important that the measures in Bill be debated and adopted at some point. I hope the bill passes because it provides the worker lockdown benefit. I hope our Canadian economy and provincial governments will not have to implement lockdowns, but they are obviously a tool to reduce the spread of COVID. I would hate to let our workers down because of shenanigans in this place. This is exactly what this routine motion would do.
[Translation]
The motion we are debating today essentially proposes the creation of two bills that would be referred to the Standing Committee on Finance. This would lead to delays, including for workers who might need benefits if certain sectors of the economy had to close again. If we adopt the motion moved by the member for , then the bill cannot be passed before Christmas.
I had the opportunity to rise to speak to Bill C‑2 earlier this year. Some sectors of the economy are still not operating at full steam, including the tourism industry. I often think of the 417 Bus Line Ltd company, which offers transportation services for the tourism industry. That company has to pay between $15,000 and $20,000 just to put a bus on the road. Some benefits would have helped them rehire employees and cover some of those costs. That would have been a big help.
[English]
The member for knows really well Paul's Little Ray's Zoo. I am going to be meeting him at five o'clock today. He wants to know when Bill will be passed and I am going to have to tell him that his friend is trying to delay, through dilatory motions like this one today. I would expect those types of motions to be presented after six, seven or eight months. We know the official opposition plays games in a minority government. Of course, the Liberals have never done that. I am going to have to tell Paul that I do not know whether Bill C-2 will pass before the holiday season. I am going to tell him to talk to his business community and ask him to call the member for Carleton to explain the sense of urgency and why these measures are so important not only for the business community, but also the workers who may depend on them.
Numbers are really high in schools right now. Parents have to be off work and it is important for them to have access to the recovery caregiving benefit. Not everybody can stay home and be paid. They are not fortunate like the member for . Some of them have to rely on measures that we have introduced. That is why it is important that Bill passes as quickly as possible, because people are depending on it. As cases rise in schools, parents have to take time off work, and it is not their fault. We are asking them to get their kids tested, and that is a responsible thing by the government. We recognize there is a gap in the system, but we fill that gap through the recovery caregiving benefit and the recovery sickness benefit. They are measures included in Bill C-2.
I hope Conservative Party members join us. They can bring accountability to the finance committee, as they are doing as we speak, but Bill needs to pass before the holiday season.